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Management Information Systems, 14e (Laudon) Chapter 11 Managing Knowledge
1) The last step in the knowledge management value chain is A) feedback. B) acquire. C) disseminate. D) store. E) apply. Answer: E Page Ref: 432 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
2) About ________ percent of the United States GDP is produced by the knowledge and information sectors. A) 15 B) 25 C) 45 D) 65 E) 85 Answer: C Page Ref: 430 Difficulty: Difficult AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
3) Which of the following statements best describes the relationship between collaboration and knowledge management?
A) Without knowledge, collaboration is difficult.
B) Knowledge doesn't exist without collaboration.
C) Knowledge is useful only when shared with others.
D) As knowledge increases, so does collaboration.
E) Knowledge is the end product of collaboration. Answer: C Page Ref: 429 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business? 1
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4) The flow of events or transactions captured by an organization's system describes A) information. B) data. C) wisdom. D) knowledge. E) experience. Answer: B Page Ref: 430 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
5) Expertise of organizational members that has not been formally documented best describes A) wisdom. B) information. C) data. D) experience. E) tacit knowledge. Answer: E Page Ref: 430 Difficulty: Moderate AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
6) Which of the following statements is no
t an accurate description of the importance of knowledge to a firm?
A) Knowledge experiences network effects as more people share it.
B) Knowledge should be seen as an intangible key asset.
C) Knowledge enables firms to become more efficient in their use of scarce resources. D) Knowledge is unconditional.
E) Much of the firm's value relies on being able to create knowledge. Answer: D Page Ref: 430-431 Difficulty: Difficult AACSB: Analytical thinking CASE: Analysis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business? 2
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7) What is meant by the statement "knowledge is sticky"? A) Knowledge is hard to move.
B) Knowledge is universally applicable.
C) Knowledge works only in certain situations. D) Knowledge is intangible.
E) Knowledge is difficult to replace. Answer: A Page Ref: 431 Difficulty: Difficult AACSB: Analytical thinking CASE: Analysis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
8) Which of the following is not one of the main four dimensions of knowledge described in the chapter? A) Knowledge is a firm asset.
B) Knowledge has different forms. C) Knowledge has a location. D) Knowledge is situational. E) Knowledge is timeless. Answer: E Page Ref: 431 Difficulty: Difficult AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
9) Changing organizational behavior by sensing and responding to new experience and knowledge is called A) change management. B) knowledge networking. C) the knowledge value chain. D) organizational learning. E) knowledge management. Answer: D Page Ref: 431 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business? 3
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10) What is the first value-adding step in the knowledge business value chain? A) acquire
B) data and information acquisition C) store D) disseminate E) apply Answer: B Page Ref: 432 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
11) The set of business processes, culture, and behavior required to obtain value from
investments in information systems is one type of A) knowledge culture. B) knowledge discovery.
C) organizational and management capital. D) organizational routine. E) knowledge. Answer: C Page Ref: 432 Difficulty: Difficult AACSB: Information technology CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
12) Which of the following are the three major types of knowledge management systems?
A) management information systems, decision support systems, and transaction processing systems
B) enterprise systems, customer support systems, and supply chain management systems
C) database management systems, expert systems, and knowledge work systems
D) enterprise-wide knowledge management systems, knowledge work systems, and intelligent techniques E) KMS, LMS, and KWS Answer: D Page Ref: 434 Difficulty: Moderate AACSB: Information technology CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business? 4
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13) Specialized systems built for engineers, scientists, and other knowledge workers charged
with discovering and creating new knowledge for a company are called A) KWS. B) LMS. C) wikis. D) CAD systems. E) KMS. Answer: A Page Ref: 435 Difficulty: Easy AACSB: Information technology CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
14) Which of the following does not describe the dimensions of knowledge in a firm?
A) It is contextual and applicable only in relevant situations. B) It is intangible.
C) It is subject to the laws of diminishing returns.
D) It is a cognitive event involving mental models.
E) It is enmeshed in a firm's culture. Answer: C Page Ref: 431 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
15) ________ knowledge exists in formal documents, as well as in formal rules that
organizations derive by observing experts and their decision-making behaviors. A) Unstructured B) Tacit C) Management D) Explicit E) Semi-structured Answer: E Page Ref: 435 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business? 5
Copyright © 2016 Pearson Education, Inc. 35 1
16) While systems such as KWS can manage semistructured and unstructured information,
enterprise-wide content management systems are designed to manage a firm's structured information. Answer: FALSE Page Ref: 434-435 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
17) Both structured and unstructured documents can contain knowledge. Answer: TRUE Page Ref: 430 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
18) Knowledge is universally applicable and easily moved. Answer: FALSE Page Ref: 431 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
19) For a firm, organizational resources are needed to transform data into knowledge. Answer: TRUE Page Ref: 431 Difficulty: Moderate AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
20) Expertise is thought to be the collective and individual experience of applying knowledge to the solution of problems. Answer: FALSE Page Ref: 430 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.1: What is the role of knowledge management and knowledge management programs in business? 6
Copyright © 2016 Pearson Education, Inc. 35 1
21) What is knowledge management? What types of knowledge might a company such as a taxi
service have, and could a taxi service benefit from knowledge management?
Answer: Knowledge management is the set of processes developed in an organization to create,
gather, store, disseminate, and apply the firm's knowledge. A taxi company's knowledge might
include explicit knowledge, such as maps and routes between destinations. Tacit knowledge
would include the experience of drivers, such as the best alternate routes between destinations or
passenger needs. A taxi service might benefit from a system that gave drivers guides on routes
that included alternate routes drivers had found. It might benefit from a learning management
system that trained drivers for locations, destinations, and alternate routes. Page Ref: 429-432 Difficulty: Easy AACSB: Analytical thinking CASE: Evaluation
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
22) Briefly outline the knowledge management value chain as it might apply to the online
catalog system of a public library.
Answer: Steps in the knowledge management chain include:
Acquisition: for an online catalog of a library this would be getting the book data into digital format.
Storage: This would involve the systems for storing this data, perhaps a central server.
Dissemination: The library would need to determine how the card catalog information is
accessed by the public or by staff.
Application: This would involve the card catalog becoming part of the library's business
processes: for example, the card catalog would be linked to a system of borrowing, so that users
would know from the card catalog whether a book was out on loan.
Management and organizational activities: This would entail using the system with a card catalog
base for other services, perhaps linking up to a wider library system to share resources,
information, or book loaning between systems. Page Ref: 431-434 Difficulty: Moderate AACSB: Analytical thinking CASE: Synthesis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business? 7
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23) Identify the three major types of knowledge management systems. Provide two examples of each.
Answer: The major types of knowledge management systems are enterprise-wide knowledge
management systems, knowledge work systems, and intelligent techniques.
Enterprise-wide knowledge management systems include: enterprise content management
systems, collaboration and social tools, and learning management systems. Knowledge work
systems include: computer-aided design systems, virtual reality systems, and financial
investment workstations. Intelligent techniques include: data mining, expert systems, case-based
reasoning, fuzzy logic, neural networks, genetic algorithms, hybrid AI systems, and intelligent agents. Page Ref: 434 Difficulty: Easy AACSB: Analytical thinking CASE: Analysis
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
24) What do you see as the challenges in setting up a knowledge management system?
Answer: Determining what knowledge will be the most effective or offer the most benefits to
the company; defining taxonomies, gathering accurate knowledge, quantifying the system's
success, change management and implementing business processes that incorporate the system. Page Ref: 429-437 Difficulty: Difficult AACSB: Analytical thinking CASE: Evaluation
LO: 11.1: What is the role of knowledge management and knowledge management programs in business?
25) Which of the following systems digitizes, indexes, and tags documents according to a coherent framework? A) wikis B) CAD C) document management D) LMS E) KMS Answer: C Page Ref: 433 Difficulty: Easy AACSB: Information technology CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses? 8
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26) Informal social networks of professionals and employees within and outside the firm who
have similar work-related activities and interests are called communities of A) practice. B) professionals. C) interest. D) knowledge. E) expertise. Answer: A Page Ref: 434 Difficulty: Moderate AACSB: Reflective thinking CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses?
27) Which of the following is not a typical component or capability of an enterprise content management system? A) LMS B) social networking tools C) tagging tools D) digital asset management E) KWS Answer: E Page Ref: 435-437 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses?
28) Which of the following would not be considered semistructured knowledge? A) request for proposals B) voice-mail C) videos D) e-mail E) memos Answer: A Page Ref: 435 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses? 9
Copyright © 2016 Pearson Education, Inc. 35 1
29) In content management, once a taxonomy is developed, documents must then be ________
with the proper classification. A) tagged B) linked C) tupled D) referenced E) documented Answer: A Page Ref: 436 Difficulty: Moderate AACSB: Reflective thinking CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses?
30) You are advising a multimedia company on the best type of knowledge management system
to help them archive digital video and sound clips. Which of the following will suit their needs?
A) enterprise content management system
B) digital asset management system C) CAD system D) VRML system E) LMS Answer: B Page Ref: 437 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses? 31) A MOOC is A) a type of online course. B) an intelligent technique. C) a virtual reality system. D) a collaboration tool.
E) a type of knowledge work system. Answer: A Page Ref: 437 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses? 10
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32) Tools for the management, delivery, tracking, and assessment of various types of employee learning best describes a(n) A) investment workstation.
B) organizational learning system. C) employee enrichment system. D) learning management system. E) employee management system. Answer: D Page Ref: 437 Difficulty: Moderate AACSB: Information technology CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses?
33) A(n) ________ is a scheme for classifying information and knowledge in such a way that it can be easily accessed. A) KWS B) KMS C) taxonomy D) intelligent technique E) COP Answer: C Page Ref: 436 Difficulty: Moderate AACSB: Reflective thinking CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses?
34) Structured knowledge is explicit knowledge that exists in informal documents. Answer: FALSE Page Ref: 435 Difficulty: Easy AACSB: Reflective thinking CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses? 11
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35) Semistructured information is all the knowledge in a firm that resides in the heads of experienced employees. Answer: FALSE Page Ref: 435 Difficulty: Moderate AACSB: Reflective thinking CASE: Content
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses?
36) How can knowledge be gathered from the personal and undocumented expertise of
professionals within a firm? List at least four ways to gather and disseminate such knowledge.
Answer: The expertise and experience of firm employees can be gathered by documenting their
experience through documenting best practices and frequently asked questions. You can also
develop a referral system by providing a way for employees to find a company expert for the
solution they are looking for. Other tools you can use include best-practices documents, FAQs,
collaboration tools, wikis, and blogs for helping gather and disseminate tacit knowledge. Page Ref: 435-437 Difficulty: Moderate AACSB: Analytical thinking CASE: Analysis
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses?
37) You have been hired by a small architectural firm interested in implementing a knowledge
management system. What features do you think would be of most benefit to them?
Answer: Student answers will vary. The ability to store structured documents, such as plans,
blueprints; collaboration tools, the ability to reference up-to-date local or national building codes,
a system for storing case studies, best practices, and corporate standards. Also of importance is a
knowledge work system or CAD to aid in engineering and design. Page Ref: 435-437 Difficulty: Difficult AACSB: Analytical thinking CASE: Evaluation
LO: 11.2: What types of systems are used for enterprise-wide knowledge management and how
do they provide value for businesses? 12
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